Car Depreciation by Year: How Much Value Does a Car Lose? (Calculator)
How much value a car loses each year, why the first 12 months hurt most, how pickups and EVs differ, and a calculator that estimates your car's value for every year you own it.
Quick answers
- How much does a car depreciate per year?
- About 20% in the first year, then roughly 10–15% per year through year five. By year five a typical car is worth about half its purchase price; by year ten, roughly a third.
- Which cars depreciate the least?
- Pickup trucks, Toyota and Honda models, the Jeep Wrangler and the Porsche 911 consistently retain the most value — often 60% or more after five years — because of reliability reputation and steady used demand.
- Do electric cars depreciate faster?
- On average, yes. Rapid technology change, changing purchase incentives and buyer uncertainty about battery life have pushed many EVs to lose 40–50% of value in three years, though popular models with strong charging networks do better.
Quick answer: A new car loses about 20% of its value in year one, then roughly 10–15% a year through year five, leaving it worth about 45–55% of the purchase price after five years. Pickup trucks and a few models (Toyota, Honda, Jeep Wrangler, Porsche 911) hold value best; luxury sedans and many EVs lose it fastest. For most owners depreciation is the largest single cost of a newer car — bigger than fuel or insurance.
Car Depreciation Calculator
Estimate what your car is worth each year and how much value it loses.
After 5 years this car is worth about $19,635 — a loss of $18,365 (48% of the purchase price), or roughly $3,673 per year.
| Year | Loss this year | Estimated value | % of price retained |
|---|---|---|---|
| Year 1 | −$7,600 (20%) | $30,400 | 80% |
| Year 2 | −$3,496 (12%) | $26,904 | 71% |
| Year 3 | −$2,877 (11%) | $24,027 | 63% |
| Year 4 | −$2,390 (10%) | $21,637 | 57% |
| Year 5 | −$2,001 (9%) | $19,635 | 52% |
| Year 6 | −$1,689 (9%) | $17,946 | 47% |
| Year 7 | −$1,436 (8%) | $16,510 | 43% |
| Year 8 | −$1,228 (7%) | $15,282 | 40% |
| Year 9 | −$1,057 (7%) | $14,225 | 37% |
| Year 10 | −$915 (6%) | $13,309 | 35% |
Model estimate, not an appraisal. Curves are CarSavr's segment averages (methodology below); condition, trim, color, accident history and local demand move real values by thousands.
Check your trade-in value →Car depreciation by year: the typical curve
| Year of ownership | Value lost that year | Cumulative value lost | Value retained (of purchase price) |
|---|---|---|---|
| 1 | ~20% | ~20% | ~80% |
| 2 | ~12% | ~30% | ~70% |
| 3 | ~11% | ~38% | ~62% |
| 4 | ~10% | ~44% | ~56% |
| 5 | ~9% | ~49% | ~51% |
| 6–7 | ~7–8%/yr | ~58% | ~42% |
| 8–10 | ~6–7%/yr | ~68% | ~32% |
The percentages are CarSavr's "average vehicle" model — calibrated to published five-year depreciation studies that put the U.S. fleet average near 40–50% over five years — and are the same curve the calculator uses for the average segment. Individual models vary by 20+ points in either direction.
Why the first year is the worst
Three things happen the moment a new car is titled: it becomes a "used" car in the market's eyes (buyers pay a premium for zero-owner history), the manufacturer's incentives that inflated the sticker disappear from the resale value, and the dealer margin, taxes and fees you paid are unrecoverable. The result is the ~20% first-year drop — and for heavily discounted or over-MSRP purchases the real drop can be far larger.
Depreciation by vehicle segment
| Segment | Year-1 loss | 5-year value retained | Notes |
|---|---|---|---|
| Pickups (Tacoma, F-150, Silverado) | ~14% | ~60–65% | Highest retention of any mainstream segment |
| Toyota / Honda compact cars & SUVs | ~15% | ~58–62% | Reliability reputation supports used demand |
| Average sedan / crossover | ~20% | ~50% | The baseline curve above |
| Luxury sedans and SUVs | ~26% | ~35–40% | High new price, costly out-of-warranty repairs |
| Electric vehicles | ~28% | ~30–40% | Rapid tech change, incentive resets, battery-age concerns |
Segment figures are model averages; see depreciation by make and model for the model-level table.
How mileage changes the curve
Value is partly a function of remaining useful life, so miles matter as much as years. As a rule of thumb from wholesale-auction pricing, each 1,000 miles per year above the ~12,000-mile norm lowers value by roughly 0.5–0.8% per year, and below-average mileage adds a similar amount. A 3-year-old car with 60,000 miles typically sells for 8–12% less than the same car with 36,000 miles.
Methodology (how the calculator works)
- Start from your purchase price.
- Apply the segment's year-one loss (14–28%).
- For years 2–10 apply the segment's base annual decay, reduced by 7% each year (depreciation decelerates as the car ages).
- Adjust every year by ±0.6% of value per 1,000 miles/yr above or below 12,000.
- Floor each year's loss at 3% and cap at 60%.
This is an estimate model, not an appraisal. Condition, trim, options, color, accident history and regional demand routinely move real transaction prices by $1,000–$5,000.
What depreciation means for your decisions
- Buying: A 2–3-year-old car has already absorbed the steepest 30–38% of its lifetime loss; you get most of the remaining life for two-thirds of the price. Compare the total picture with the total cost of ownership calculator.
- Financing: Depreciation is why a 0%-down, 72-month loan is upside-down for years. Match your down payment to the year-one drop — see how much to put down on a car.
- Insurance: If the car's value has fallen below roughly 10× the annual cost of collision + comprehensive, consider dropping full coverage.
- Total loss: If the insurer's payout is less than your loan balance, you owe the difference — model it in what happens to your car loan when your car is totaled.
- Selling: Get a live number with the trade-in value estimator and read trade-in vs. sell private party.
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Fact-checked by Michael EckeThis guide is based on CarSavr's independent editorial research. Our recommendations follow a documented, conflict-checked review process — our editorial standards.
"Car Depreciation by Year: How Much Value Does a Car Lose? (Calculator)." CarSavr, October 7, 2026, https://carsavr.com/guides/car-depreciation-by-year.See if you're overpaying
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